Systems integration: Boston Rack International, Inc., and Base Manufacturing complete merger agreement
Storage systems integrator and manufacturer join forces to create first-of-its-kind company in the materials handling industry.
Staff -- Modern Materials Handling, 3/12/2009
Boston Rack International, Inc, a provider of warehouse storage solutions, is joining forces with Base Manufacturing, a full-service manufacturer of roll-form and structural storage products. The merger will create a full-service integrator and warehouse storage solutions manufacturer to provide customers with a host of services.
"By merging with Base Manufacturing we will be able to join forces and provide our customers the quality, efficiency and depth of products that our competitors are not able to offer," said Peter Murphy, Boston Rack International's founder, president and chief executive officer.
The merger comes as the result of months of collaboration between Murphy and Base president and chief executive officer Steve South. Murphy had long believed that combining Boston Rack with a manufacturer would be of great strategic value to the company and, more importantly, to its customers. In Base Manufacturing, Murphy found the competitive labor force, the strong management team and the first class manufacturer that can produce both roll-form and structural storage solutions.
Both company executives anticipate substantial advantages and benefits stemming from the merger.
"This advantage provides us with very competitive products and pricing to our customer base. Steve has expanded his facilities recently, which give us the capacity we need for the future," Murphy said.
In addition, to enhance customer service, the merger will provide both companies a larger sales force and network of resources, and a greater reach into the warehouse materials handling industry which would otherwise be harder to attain.
"Timing was very important to us, due to both our strengths exhibited in a declining market," South said. "We felt the new combination would offer the industry a value that exceeds all others. In today's market, only the strong survive."
Following the merger, Boston Rack and Base will operate as subsidiaries of a holding company, Elite Storage Solutions, in order to continue taking advantage of brand identities within their marketplaces.
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